MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. December 2, 2015 (Report 48)

CENTRAL BUTTER 

Butter production remains active in the Central region as interest for 
cream from some Class II manufacturers is seasonally lower. With 
active cheese orders, churn operators are receiving additional cream 
loads from cheese plant operators. Also some Eastern cream is clearing 
into Central butter facilities, which is easing demand on Eastern 
production facilities. Class III cream sellers indicate 
skimming/selling cream is more beneficial than fortifying cheese vats. 
Butter inventories are mixed, with a few butter manufacturers 
anticipating a shortfall in bulk butter by the middle of the month. 
They indicate it is too late to start microfixing butter for December 
order fulfillment. The market is steady through midweek, but 
participants still expect the usual pre-holiday decline in prices to 
arrive "any day now." The DMN National Retail Report-Dairy for 
November 27-December 3 noted the national weighted average advertised 
price for a 1 pound package of butter was $2.84, up $0.02 from a week 
ago, but $0.44 lower than a year ago. The weighted average price in 
the Midwest region was $2.74, and in the South Central region, $2.77. 
The CME Group Grade AA butter market closed Wednesday at $2.9050. This 
is up one-half cent from last Wednesday. Bulk butter prices range from 
4 cents under to 7 cents over the market, based on CME Group prices 
and various indices. 

Dairy Market News Reporting Change Notice
Upon the conclusion of the October 2015 industry comment period and a 
review of industry responses, Dairy Market News (DMN) is updating the 
Dairy Market News Working Guidelines, effective Report 1, January 
2016. The updates will allow DMN market reports to additionally 
include information and sales prices reported by individuals and firms 
functioning as marketing agents selling on the behalf of dairy product 
manufacturers. The Working Guidelines updates are intended to capture 
more information on pricing and market conditions and reflect the 
evolution of the marketing of dairy products. Currently, market 
pricing information is collected for first sale, f.o.b. producers' 
plants or warehouses. 

Link to current and updated DMN working guidelines:
http://www.ams.usda.gov/market-news/individual-dairy-market-news-
commodity-reports

December 1, 2015
1530CT Janet.Linder@ams.usda.gov 608.557.7003
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home